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3M Corporation

3M Corporation
Founded in 1902, the Minnesota Mining & Manufacturing Corporation (3M)
reported sales revenues of $16.7 billion during the year 2000. The company made
more than 60,000 products that year. Nearly 35 percent of its total sales, or about
$5.6 billion, came from products that had been introduced during the prior four
years, and another $1.5 billion came from products introduced during 2000. These
revenues stemmed from 3M’s six business segments: industrial (tapes, abrasives, and
adhesives); transportation, graphics and safety; healthcare (including medical and
surgical supplies and closures for disposable diapers); consumer and office; electro
and communications; and specialty materials. All six business segments were
profitable in 2000. Asia Pacific, Europe, and Latin America achieved double-digit
volume growth. Non-U.S. business represented 53 percent of total net sales and 63
percent of total operating income.
3M had identified 21 established and new strategic brands. Some of its best-known
brands were Scotch tapes, Scotch-Brite cleaning products, and Post-it
repositionable products. Newer brands included Vikuiti display enhancement,
Volition fiber optic network solutions, Command adhesive, and Nexcare firstaid
products. More than 75,000 3M employees worked to create more than 500 new
products every year.
3M had institutionalized a corporate culture that promoted intrapreneurship. The
company was recognized for its vertical organizational structure, with businesses
established by technologies and markets. Between 1985 and 2000, 3M’s gross profit
margin averaged over 48 percent. During this same 15-year time period, return on
equity for the company averaged 22.2 percent. In Fortune magazine’s annual survey
of “America’s Most Admired Corporations,” 3M earned a top-10 ranking in 10 of
the last 15 years; only three companies appeared more often. During 1985-2000, 3M
also appeared on the Fortune top-three rankings for...